3 Things Seniors Should be Aware of About Medicare Supplements

Medicare supplement plans are a thorny topic for most people getting ready to retire, as well as those already on the program. There are many different options available, and pricing varies widely between providers. Ass in the fact that many providers will bundle coverage with additional incentives, and you find you have a very difficult decision to make indeed.

1. The best plan for you is not necessarily the one with the most coverage. While the simplest choice is to go with a plan that covers everything 100 percent, there are other options for a reason. Depending on the plan offered and your current health, it may be better to go with a plan that does not cover all your out of pocket expenses in return for a higher deductible. This is a difficult decision, so you may want to seek some help looking over your options. Consider carefully if the higher premiums are worth not having major expenses if you ever fall ill or have an accident.

2. Medicare Plan F, which is the most common plan, is identical regardless of which company your work with. That doesn’t meant that it is the same price everywhere, however. Since it covers all your expenses by definition, there cannot be any variation in coverage. The only exception is high-deductible Plan F plans that require a $2000+ deductible and pays everything after that. The advantage of this plan is that your payments will stay stable. All you need to do is provide your insurance information and you can walk out of the office with a zero balance every time.

3. Even Medicare Plan F does not cover everything. Unless your purchase a supplemental policy, you are still going to need to cover some things yourself. This includes more basic items such as dental, vision, and hearing aids, but is also some of your major expenses such as private nurses and nursing home care. Keeping this in mind could make a big difference when it comes to long term care. Since most people will need this service at some point, you must take it into account in your retirement planning.

The most important thing to do is to take the time to make the right decision early on. If you need more coverage because your health is failing later in life, it will be much more difficult to obtain. Layout your different options, as well as what you can afford to pay for you own care and pick the plan that will work best for you in the long term.

Michele Andrea Bowen has been a financial consultant for just shy of 22 years. Her client base ranges from individuals, to families, to small and medium sized businesses. Her expertise extends from daily money management, to insurance, to planning for retirement, as well as managing finances in retirement.